# Banker's lien

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A **banker's lien** is a legal right arise in many [common law jurisdictions](/source/Common_law_jurisdictions) of a [bank](/source/Bank) to exercise a [lien](/source/Lien) over any property in the custody of the bank as security. Lien is of two types:

1. Particular lien
1. General lien

Particular lien confers to retain the goods in connection with which a particular debt arose i.e. A particular lien applies to one transaction or certain transaction only. e.g. a tailor has the right to certain the clothes made by him for his customer until his tailoring charges are paid by customer.

## Scope

The precise effect of a banker's lien varies according to the laws of a particular jurisdiction. Under English common law it applies to all property coming into the possession of the bank in the usual course of banking business,[1] subject to the important exception that it does not apply to property which is deposited with the bank for safe custody.[2]

Whilst most common law liens normally only give the lienee a passive right to retain the property, unusually, the banker's lien permits the bank to sell the relevant property.[3]

The lien does not generally extend to intangible rights, including credit balances on accounts. However those credit balances may be subject to the [banker's right to combine accounts](/source/Banker's_right_to_combine_accounts).[4]

The banker's lien may be modified or abrogated by agreement.[5]

## References

1. *Brandao v Barnett* (1846) 12 Cl 7 F 787

1. *Leese v Martin* (1873) LR 17 Eq 224 at 235. The bank holds such property as [bailee](/source/Bailment), and may be entitled to exercise a separate lien as such.

1. *Rosenberg v International Banking Corporation* (1923) 14 Ll LR 344 at 347

1. *[National Westminster Bank Ltd v Halesowen Presswork & Assemblies Ltd](/source/National_Westminster_Bank_Ltd_v_Halesowen_Presswork_%26_Assemblies_Ltd)* [1972] AC 785

1. E.P. Ellinger; E. Lomnicka; C. Hare (2011). *Ellinger's Modern Banking Law*. 5th ed. [Oxford University Press](/source/Oxford_University_Press). p. 864. ISBN 978-019-923209-3.

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Adapted from the Wikipedia article [Banker's lien](https://en.wikipedia.org/wiki/Banker's_lien) by Wikipedia contributors ([contributor history](https://en.wikipedia.org/wiki/Banker's_lien?action=history)). Available under [Creative Commons Attribution-ShareAlike 4.0 International](https://creativecommons.org/licenses/by-sa/4.0/). Changes may have been made.